Indian Stock Markets: How it Works and its Dynamics?
Operators in the stock market are similar to a syndicate. They are groups of people or institutions who work together to artificially drive stock prices of small or medium-sized companies, up or down in a very short span of time. Operators comprise brokerages, financial firms, speculators, high net worth individuals and individuals belonging to the company itself. In the case of company employees and promoters, it is legal if they publicly disclose their buying and selling activities. Market makers, on the other hand, are firms or individuals who actively place simultaneous buy and sell orders of a specific security in large numbers. They help maintain liquidity in the stock markets.